All these have to work together. It's a team effort. If one of them isn't there then the whole system fails. Once I put it all together I developed confidence in my trading, and I knew that if I just stuck with it good things would happen.
Someday, and that day may never come, I'll call upon you to do a service for me.
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When I found a system that was suited to my ADHD...that was important. ...One chart, one system. Four setups I look for, over and over and over and over. Then when my profit target is reached or exceeded, quit for the day. Following the rules of my system RELIGIOUSLY has been very challenging, but since i seem to be punished many times I break them, I just don't break them.
Also not trading if I am tired or out of sorts. making sure I exercise and eat, and feel relatively at peace, balanced, and ready to compete.
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In #4, I am saying don't try to predict the market direction or reversals based on any technical indicator. In trendy markets stay with the trend until there trend ends. I have not seen any technical indicator what detects the trend reversal points, although they may detect retracements.
In the range markets, it is OK to trade chart patterns like double tops and bottoms, especially if they are at previously identified support/resistance zones.
I look at market internals. One of the indicators I use to gauge market sentiment is the NYSE TICK. I plot a 14 period SMA on 1-minute TICK chart. In trendy markets the SMA plot usually stays between 200-600 range (in either direction). If the SMA moves to the opposite side and stays there, they I consider the edge is gone from the trend and time to close the trade. Also, if the TICK is reaching for the extremes on the opposite of the trend, it is usually an indicator of end of trend, IMO.
On range days, I don't find TICK or the other market internals to be that useful for gauging market sentiment (obviously, there is no strong directional sentiment). So, decisions are based on technical indicators, like where the market is trading in relation to value area, delta divergence, cumulative delta divergence, candle stick patterns and swing targets etc.
Lately I am looking at the Price Volume Pattern (PVP) indicator from InvestorRT. It looks very promising in giving early indication of reversal and/or continuation with out the clutter of gomi/footprint type of charts.
Last edited by cogito; October 11th, 2015 at 07:57 PM.
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I think it's been through trading..that I truly realized that I was ADHD. I should have known by my inability to focus in high school and grade school plus always being totally unorganized. Also, I always had trouble completing tasks.
In trading this has manifested in a total lack of impulse control and an inability to follow my own rules. However, I have given myself some extremely specific steps to take and have seen great progress.
Some of these are:
1. Constantly verbalizing the current market conditions and stating out loud the type of potential setup forming. (This helps keep me focused and decodes the multiple scrambled thoughts I can get while watching price movement.)
2. Verbalizing a checklist before entering a trade that could reveal any potential adverse conditions. (This controls the impulse to jump in just because price starts gaining momentum and "Looks" like it's doing something.)
3. After 2 consecutive losses, taking a brief time out . During this time I assess my emotional state and the state of the market.(This step prevents the urge to "Revenge trade" and also can help me return in a calm state to objectively view the market.)
4. After hitting a max daily drawdown, immediately shutting down the platform and walking away. (In the past, I often was unable to stop myself from trading and I would have some epic disasterous losing days.)
Since I do have a very good edge, these steps have helped me execute it without the ADHD issues sabotaging me constantly. I have been very happy with my progress.
Failure is not an option
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You're looking for a process, don't you think it is the same thing that looking for a new system. Maybe the answer is here ?
Do you really want to win, do you really think you can win, do you really think you really deserve to win ? A famous trader (Ed Sekota I think) have said that markets always give you what you're looking for... it's true in many ways.
R.I.P. Olivier Terrier (aka "Okina"), 1969-2016.
Please visit this thread for more information.
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